HCA Healthcare Inc (HCA) Posts Solid Q4 Earnings and Provides 2024 Outlook
Revenue: Q4 2023 revenue increased to $17.303 billion from $15.497 billion in Q4 2022.
Net Income: Q4 2023 net income attributable to HCA Healthcare Inc was $1.607 billion, down from $2.081 billion in Q4 2022.
Adjusted EBITDA: Q4 2023 Adjusted EBITDA rose to $3.618 billion from $3.179 billion in Q4 2022.
Same Facility Admissions: Increased by 3.1% in Q4 2023 compared to the prior year period.
Share Repurchase: HCA repurchased 3.647 million shares for $910 million in Q4 2023.
2024 Guidance: Revenue is estimated to be between $67.75 and $70.25 billion, with net income projected at $5.20 to $5.60 billion.
Dividend: A quarterly cash dividend of $0.66 per share will be paid on March 29, 2024.
On January 30, 2024, HCA Healthcare Inc (NYSE:HCA) released its 8-K filing, detailing the financial and operating results for the fourth quarter ended December 31, 2023. The Nashville-based healthcare provider, which operates the largest collection of acute-care hospitals in the United States, reported a revenue increase in Q4 2023 to $17.303 billion, up from $15.497 billion in the same quarter of the previous year. However, net income attributable to HCA Healthcare Inc saw a decline to $1.607 billion, or $5.93 per diluted share, compared to $2.081 billion, or $7.28 per diluted share, in Q4 2022.
The company's Adjusted EBITDA, a non-GAAP financial measure, also saw an increase to $3.618 billion in the fourth quarter of 2023, up from $3.179 billion in the fourth quarter of 2022. This growth in Adjusted EBITDA reflects the company's ability to manage costs effectively while experiencing strong demand for services across its diversified portfolio.
Operational Highlights and Financial Performance
HCA Healthcare's performance in the fourth quarter was marked by a 3.1% increase in same facility admissions and a 3.9% increase in same facility equivalent admissions. Emergency room visits also saw a rise of 2.1%, indicating a robust demand for healthcare services. The company's same facility revenue per equivalent admission increased by 6.9%, demonstrating an ability to enhance revenue generation from its services.
For the year ended December 31, 2023, HCA Healthcare's revenues totaled $64.968 billion, an increase from $60.233 billion for the previous year. The net income attributable to HCA Healthcare Inc for the full year was $5.242 billion, or $18.97 per diluted share, compared to $5.643 billion, or $19.15 per diluted share, for the year ended December 31, 2022.
The balance sheet as of December 31, 2023, showed cash and cash equivalents of $935 million, total debt of $39.593 billion, and total assets of $56.211 billion. Capital expenditures for the fourth quarter of 2023 totaled $1.159 billion, excluding acquisitions, and cash flows provided by operating activities amounted to $2.674 billion.
Strategic Moves and Future Outlook
HCA Healthcare announced an additional share repurchase program for up to $6 billion of the company's outstanding common stock, reflecting confidence in its financial strength and commitment to delivering shareholder value. The company also declared a quarterly cash dividend of $0.66 per share, to be paid on March 29, 2024, to stockholders of record as of March 15, 2024.
Looking ahead, HCA Healthcare provided guidance for 2024, with estimated revenues ranging from $67.75 to $70.25 billion and net income attributable to HCA Healthcare Inc projected to be between $5.20 and $5.60 billion. Adjusted EBITDA is forecasted to be between $12.85 and $13.55 billion, and capital expenditures, excluding acquisitions, are estimated to be in the range of $5.1 to $5.3 billion.
Additionally, HCA Healthcare announced the retirement of CFO Bill Rutherford and the appointment of Mike Marks as the new CFO effective May 1, 2024. This transition marks a significant change in the company's executive leadership and underscores the depth of the company's finance team.
The company's performance, strategic initiatives, and forward guidance suggest a continued focus on growth and operational efficiency, positioning HCA Healthcare to navigate the challenges of the healthcare industry while delivering value to patients, communities, and shareholders.
Explore the complete 8-K earnings release (here) from HCA Healthcare Inc for further details.
This article first appeared on GuruFocus.
